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Africa|Diamonds|Financial|Mining|Services
Africa|Diamonds|Financial|Mining|Services
africa|diamonds|financial|mining|services

Petra says prices have likely bottomed; secures increase in credit facility

Petra CEO Richard Duffy

Petra CEO Richard Duffy

Photo by Creamer Media

8th December 2023

By: Creamer Media Reporter

     

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Diamond mining group Petra Diamonds has sold 462 794 ct of diamonds for $58.7-million in its third tender for the 2024 financial year.

This is higher than the 444 029 ct sold for $41.5-million in the second tender of the current financial year and the 303 300 ct sold for $41.5-million in the third tender of the 2023 financial year.

The average price for the third tender of the current financial year was $127/ct, higher than the $91/ct achieved in the second tender of the year, but lower than the $137/ct achieved in the third tender of the prior financial year.

"The 20% increase in like-for-like prices for our third tender of financial year 2024 supports the view that diamond prices have likely bottomed.

“We believe actions taken by major producers to curb supply and the two-month Indian moratorium that comes to an end on December 15, together with strengthened retail sales in the US, have improved market conditions as inventory levels across the pipeline rebalance. Ongoing discipline by the key players is important to provide some price stability in the new year," comments Petra CEO Richard Duffy.

Meanwhile, financial services provider Absa has approved an increase of R750-million to an existing R1-billion first lien revolving credit facility.

The diamond miner, which operates three mines in South Africa and one in Tanzania, says R850-million has been drawn under the facility, leaving a balance of R900-million available under the upsized facility.

"Securing this increased facility, coupled with the recently announced capital deferrals and cost optimisation, further improves our resilience and operational and sales flexibility in the event of a weaker-for-longer diamond market," says Duffy.   

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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